HANOI, Sept 15 – Vietnam’s economic outlook for 2024 is experiencing a notable downward revision of approximately 0.15% due to the severe impacts of Typhoon Yagi, the most formidable storm to hit Asia this year. Nguyen Chi Dung, the Planning and Investment Minister, revealed that this adjustment is essential to reflect the extensive damage caused by the typhoon, which made landfall in Vietnam last Saturday.
Typhoon Yagi, a powerful and destructive force, unleashed its fury across Vietnam, causing widespread devastation. The storm has wreaked havoc on the country’s infrastructure, industrial facilities, and agricultural sectors, resulting in an estimated financial loss of about 40 trillion dong, which translates to roughly $1.63 billion. This staggering figure underscores the significant economic disruption that Vietnam is facing as a result of the typhoon.
Minister Dung provided further insights into the projected economic impact, highlighting that the growth rates for the latter half of the year are expected to slow down considerably. The minister’s assessment indicates that GDP growth for the third quarter of 2024 could experience a reduction of 0.35%, while the fourth quarter may see a decline of 0.22%. These figures represent a significant deviation from earlier forecasts that did not account for the storm’s impact. The Planning and Investment Ministry had previously anticipated a robust economic growth rate of 7% for Vietnam in 2024, but this optimistic projection is now under threat due to the storm’s aftermath.
The ramifications of Typhoon Yagi extend beyond economic figures, as the storm has inflicted considerable human and infrastructural damage. According to data from Vietnam’s disaster management agency, at least 281 people have lost their lives as a result of the typhoon, with 67 individuals reported missing as of Sunday morning. The human toll of the disaster is a stark reminder of the severe consequences that natural calamities can have on communities.
In addition to the loss of life, the storm has led to extensive damage to agricultural lands and residential properties. Floodwaters have inundated approximately 190,000 hectares of rice paddies, a critical component of Vietnam’s agriculture, as well as 48,000 hectares of cash crops, including corn and cassava. The widespread flooding has also severely impacted nearly 232,000 homes in northern Vietnam, further compounding the challenges faced by affected communities.
The city of Haiphong, known for its industrial significance, has been particularly hard hit by the storm. The city, which hosts several key industrial parks, has reported substantial damage and losses amounting to about 11 trillion dong, or approximately $448.43 million. The economic disruption in Haiphong highlights the broader impact of Typhoon Yagi on Vietnam’s industrial and economic infrastructure.
Despite the severe impact of Typhoon Yagi, the Vietnamese government remains resolute in its efforts to stabilize the economy and achieve its growth targets. In a separate statement, government officials reaffirmed their commitment to controlling inflation and striving for the previously projected GDP growth rate of around 7% for the year. This determination reflects the government’s dedication to mitigating the adverse effects of the typhoon while ensuring that economic progress is not derailed by the disaster.
The situation in Vietnam serves as a poignant example of the broader challenges that countries face when dealing with natural disasters. The economic fallout from Typhoon Yagi underscores the vulnerability of economies to such events and the importance of resilience and preparedness in managing these risks. As Vietnam navigates the aftermath of the typhoon, the focus will be on recovery and rebuilding efforts, as well as strategies to bolster the country’s economic resilience in the face of future challenges.
While Typhoon Yagi has significantly impacted Vietnam’s economic outlook for 2024, leading to a revised growth forecast, the government’s ongoing efforts to stabilize the economy and achieve its growth objectives remain crucial. The disaster’s extensive human and infrastructural toll highlights the need for comprehensive disaster management and recovery strategies, as well as the broader implications for economic stability in the face of natural calamities.